Brazil not planning free public transport soon, presidential chief of staff says

Public buses are pictured parked at their company garage in Rio de Janeiro, Brazil May 28, 2018. REUTERS/Ricardo Moraes

Brazil's presidential chief of staff, Rui Costa, said on Wednesday the government has no plans to eliminate public transport fares nationwide this year or next, a day after the finance minister had confirmed studies to assess ways to finance the sector.

"There is nothing planned for next year or this year," Costa said in a local radio interview. "I want to make this clear: the president only requested studies."

According to a government source, there are doubts within the government regarding the logistical and political feasibility of the proposal.

President Luiz Inacio Lula da Silva asked his economic team to evaluate the potential implementation of the measure, but he is reportedly in no rush and does not intend to present it as a campaign promise, the source added.

"The studies will be presented to the president so he can assess whether it is feasible and where the funding would come from," Costa added. "If it proves viable, it will be announced at the appropriate time."

Finance Minister Fernando Haddad said in an interview with Record TV this week that the proposal would be included in Lula's policy platform next year, when Brazil holds a general election.

"(Lula) knows this issue is important for workers, the environment, and urban mobility," Haddad said.

The finance minister's remarks have swayed Brazilian markets this week, weakening Brazil's real against the US dollar amid investors' concerns that the initiative could have negative fiscal implications.